Cars/Motors Insurance
Motor insurance is a form of financial protection tailored to cover vehicles like cars, trucks, and other motorized vehicles used on roads. It serves to safeguard owners from the financial burden of damages or losses due to both natural and man-made causes. This includes events like floods, storms, or earthquakes, as well as incidents such as accidents, theft, or vandalism. Depending on the policy terms, motor insurance may cover the cost of repairs or even replace the vehicle if it’s irreparable. It typically offers coverage for damages to the insured vehicle and may also extend protection to third-party liabilities, ensuring the policyholder is financially protected in the event of causing harm to others or their property. The extent of coverage varies based on the specific plan, with some offering broader protection against a range of risks, while others are more focused on essential liability coverage.
Enquire Now
What is Car Insurance?
A car is often one of the most cherished and valuable possessions for an individual, ranking high in importance right after a home. Simply put, car insurance is a contract between the owner and an insurance provider. In exchange for a premium, the policy offers coverage against various risks associated with the vehicle, including damage, theft, accidents resulting in injury or death, and liability coverage in case of legal action following an accident (Third Party Liability).
Importance of Motor Insurance
According to the Motor Vehicle Act of 1988, enacted by the Government of India, it is mandatory for any motor vehicle operating in public spaces to have insurance that covers Third Party Injury and Property Damage. India, being one of the largest automobile markets globally, has seen a significant rise in the number of vehicles on the road. With this increase, the frequency of accidents and mishaps has also surged in recent years. Additionally, rising repair costs and vehicle breakdowns have further contributed to the challenges faced by vehicle owners. Any financial liabilities arising from damages caused to third parties in an accident must also be considered. A car insurance policy provides essential protection against these risks, offering coverage for third-party liabilities and minimizing the financial burden on the vehicle owner in the event of accidents or damages.
What are the Benefits of Car Insurance Policy?
Comprehensive Cover:
This policy cover is a combination of OWN DAMAGE & THIRD PARTY DAMAGE . Own Damage Cover offers protection from damage to car owing to human actions, with coverage of risks of theft of the vehicle, burglary, acts of terrorism, riot or damage in transit by air, road, rail and waterways.
Comprehensive Cover:
The insurance cover provides you with comprehensive protection against legal liabilities that may arise from damages caused to third-party property and/or any injuries sustained by a third party. This can include situations where the third party suffers temporary or permanent disability as a result of an accident involving your vehicle.
What Factors to Consider Before Choosing Car Insurance Company?
Reputation and Financial Standing
One of the most crucial aspects of choosing car insurance providers is to do research on the reputational and monetary standing of the car insurance provider. You can go through online reviews, speak to the friends and relatives and through the newspapers and stay abreast with car insurance sector news.
Convenience
The car insurer which you opt for must have the digital presence and payment options and also if there is a mobile app which could help the customers then it is a big plus. You can get digitally signed policy through their portal.
Cashless Garage Network
One of the most harrowing after things is to get the car fixed after an accident. If you can get the car repaired at a garage that offers the cashless facility and is on empanelled list of garages connected to vehicle insurance company then it is definitely a higher positive.
Customer Service
An important measure is the Customer Service of the motor insurance company. The support the customer gets in relation to buying and the after sales service is important for choosing motor insurance policy.
Add More Value with Add-on Cover for Your Car Insurance Policy
Merely having third party liability and Comprehensive Cover may not suffice your vehicle protection requirements. Hence, Add-On Covers are provided by car insurance companies to protect the motorist from the scenarios that are generally excluded. Each add-on cover presents the automobile owner with unique advantages. Below mentioned are most popular Add-On Covers.
Ten Popular Car Insurance Add-On Covers
Personal Accident Cover
Under this Add-On, any partial or permanent disability or death incurred as a result of the vehicle meeting with an accident is covered for the owner driver of the vehicle. In such an unfortunate event, the nominee would receive sum assured in event of death. All hospitalization expenses arising from any Partial or Permanent Disability or Dismemberment are also covered in this Add-on.
Engine Coverage
When a vehicle is stranded or submerged in flood waters, the engine of the car can be damaged when the car is started later on. Loss arising from this is referred to as consequential loss, arising from events outside of direct loss like accidents. With an Engine Cover/ Hydrostatic cover, all engine centric damages and costs arising from same, are covered.
Roadside Assistance
The objective of this Add-On of Car Insurance is that you would be able to get assistance in case your car breaks down. You can expect assistance for minor repairs, battery restart, spare key arrangement, phone assistance, emergency fuel and towing to nearest authorised workshop.
Zero Depreciation Cover
Insurance Company pays the claim of car only after deducting the depreciation value of the car. When you subscribe this Add-On, in case of a claim, insurance company will not deduct any depreciation of parts while paying for claim.
Daily Allowance
Under this Add-On, you can use an alternative vehicle in event of car being damaged or stolen. Allowance varies from Rs. 500 to Rs. 1000 depending on model of car and is given for 10 to 15 days. The car needs to be repaired at authorized garage to avail the benefit of this cover.
Consumables Cover
Under this Add-On, the car owner is given cover by car insurance company for costs related to nuts, bears and bearings, screen washers and engine oils and other such consumable item, as may be used for repair, in event of car getting damaged in accident.
Tyre Protection
Return To Invoice
Return to Invoice (RTI) is a type of insurance coverage that provides compensation if your car is stolen or deemed beyond repair. With RTI, the compensation you receive is equal to the car’s invoice value, which is the original purchase price of the vehicle.
Points to Consider Before you Buy Car Insurance Policy Add-On
When selecting car insurance, it’s important to consider factors like your vehicle’s model, age, and key components. For cars older than 5 years, it’s advisable to opt for Roadside Assistance and, if available, a Zero Depreciation Cover to better protect against potential repair costs.
If you live in coastal areas, choosing a Hydrostatic Lock / Engine Cover is highly recommended due to the higher risk of water-related engine damage, compared to those residing inland.
For individuals who frequently travel using their own vehicle, a Personal Accident Cover provides essential protection, covering injuries that may occur during extensive travel.
Add-ons like Return to Invoice and Consumables Cover can help reduce out-of-pocket expenses in case your vehicle is totalled or severely damaged in an accident. These covers ensure that you are compensated appropriately without bearing the full cost of replacements or repairs.
Keep in mind, each add-on addresses gaps not covered under a standard comprehensive policy. To maximize your coverage, carefully evaluate your driving habits and conditions, and select the most relevant add-ons accordingly.